9.55am BST What's the Bank's assessment of the equilibrium level of the unemployment rate?
Suppose bullish investors push prices above their equilibrium level.
In March, China's premier, Wen Jiabao, said the Chinese currency may "have reached its equilibrium level".
So there's a tradeoff that leads to some equilibrium level of redistribution.
This pushes up effective demand and could possibly lift the equilibrium level of house prices.
The assumption in the foregoing discussion was that money wages were at the equilibrium level.
Estimates of the equilibrium level of unemployment – the rate consistent with hitting the government's 2% inflation target – have been revised down.
The Bank has been busily cutting its estimate of the equilibrium level of unemployment, and on today's evidence will need to continue doing so.
They jump all the way to the new equilibrium level, and, as the late M.I.T. economist Rudiger Dornbusch explained almost forty years ago, they often overshoot it.
American debt exceeded the "equilibrium" level by some 25% of household income at the start of the recovery.
That suggests the yuan is close to its "equilibrium" level, said Wen Jiabao, China's prime minister.Unfortunately, China has rebalanced externally without rebalancing internally.
